You Are Advising the Owner of Smalltown Computer,a New,local Computer

question 75

Essay

You are advising the owner of Smalltown Computer,a new,local computer repair store that also builds custom computers to order.What competitive strategies could Smalltown Computer exert? Which ones will it have difficulty exercising?

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Definitions:

Trade Agreement

A contractual arrangement between countries regarding their trade relationships and tariffs.

Microeconomics

Branch of economics that deals with the behavior of individual economic units—consumers, firms, workers, and investors—as well as the markets that these units comprise.

Benefit

The advantage or profit gained from something.

Absolute Advantage

The ability of a country, individual, or firm to produce a good more efficiently than another entity using the same amount of resources.